Opportunity cost

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Question 2
Easy

A business has a fixed marketing budget of £200,000£200,000£200,000. It can allocate this budget between television advertisements, which cost £40,000 £40,000\,£40,000 each, and social media campaigns, which cost £8,000 £8,000\,£8,000 each, as illustrated by the budget constraint line below.

Marketing Budget Constraint

If the business decides to purchase exactly 3 television advertisements and spend the remaining budget on social media campaigns, what is the opportunity cost of purchasing these 3 television advertisements?

101010 social media campaigns

151515 social media campaigns

252525 social media campaigns

222 television advertisements

Opportunity cost Questions

  1. A Level
  2. /Economics
  3. /Opportunity cost